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1. |
What is Long Term Care? |
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Long Term Care (LTC) defines the services and support needed because of a chronic
health condition or disability - where help is required with the activities of daily
living (bathing, continence, dressing, eating, transferring and toileting). |
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2. |
Where is Long Term Care provided? |
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Care can be provided at home, in an adult day care center, assisted living facility
or a nursing home. |
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3. |
Who decides where care is provided? |
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The person needing care, in conjunction with their family, usually decide where
care will be provided. Many people prepare in advance by talking to the family about
their wishes and by having an attorney prepare a Living Will and Health Care Proxy. |
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4. |
What are the types of expenses I could face if I need Long Term Care? |
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The average cost of care can be
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$18 per hour for Home Care
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$5,000 per month for Assisted Living
- $8,000 per month for a Nursing Home
In other words, it could cost you in the region of $96,000 if you required a one
year stay in a nursing home. Without the protection of Long Term Care insurance
you run the risk of having to spend some or all of your life savings to pay for
this care. This could result in an unnecessary financial burden on you and your
family. |
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5. |
Who pays for Long Term Care? |
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The cost of Long Term Care can be paid by the person needing care, their family
members, Medicare (max 100 days), Medicaid (if assets are less than $2,000) or Long
Term Care insurance. |
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6. |
Why should I consider buying a Long Term Care insurance policy? |
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In many cases, health and disability insurance will cover only a small portion of
long term care costs. A Long Term Care insurance policy protects your assets from
the cost of care. This is especially important if you have a spouse. If your savings
were spent on one spouse's care that could leave the healthy spouse without enough
money for their future needs. Spending your savings on Long Term Care could diminish
or eliminate the possibility of leaving an inheritance. The insurance company can
also help you and your family find the appropriate care in your area. |
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7. |
Is it easy to buy a Long Term Care insurance policy? |
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Yes, in most cases. If you are in reasonably good health, an experienced New Jersey
long term care insurance agent who represents several reputable insurance companies
can help obtain the best and most affordable coverage available. Regardless of your
marital status or whether you have children or not, you should consider this most
important and valuable coverage as part of your overall insurance needs.
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8. |
How do I qualify to receive benefits on a Long Term Care insurance policy? |
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You could qualify to receive benefits if:
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You are unable to perform 2 of the 6 activities of daily living (ADLs) and a medical
professional certifies that this inability will last for at least 90 days OR
- If you require supervision with the ADLs due to a cognitive impairment (e.g. Alzheimer's
disease)
The six defined activities of daily living (ADLs) are bathing, continence, dressing,
eating, transferring (e.g. moving unassisted from a bed to a chair) and toileting. |
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9. |
Are all Long Term Care insurance policies the same? |
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Not all Long Term Care insurance policies the same. You can customize the policy
to meet your needs and budget. You may also choose the coverage amount (the benefit)
that best suits you; the waiting period until the coverage begins and the length
of the time the benefits will be paid (benefit period).
Other factors you may wish to consider include whether you want to purchase any
optional riders that are available such as an inflation rider (i.e the coverage
amount increases each year to keep up with inflation). |
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10. |
Is the premium for Long Term Care protection tax-deductible? |
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Depending on your tax filling status, all or part of the premium may be deductible.
Certain states also have a tax credit for Long Term Care insurance premiums. |
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